In Indiana, many new laws went into effect on July 1, 2012. The General Assembly approved 160 bills this year. One law that went into effect on July 1st makes it illegal for the State of Indiana or a political subdivision to contract with a “person” who invests in Iran’s energy sector. As of July 1, 2012 all public contracts or renewals of public contracts must contain certification language stating that the person awarded the contract, such as a contractor or a material supplier on a public project, is not engaged in investment activities in Iran. IC 5-22-16.5-11. Investment activity means that a person provides goods or services of $20 million or more in value to the energy sector of Iran. This includes activities to develop various energy sectors such a petroleum, natural gas or nuclear power and includes products used to construct or maintain pipelines used to transport fuels.
Section 13 of the law requires at the time a contract is awarded or renewed the contractor being awarded the contract must certify in writing to the governmental body that the contractor is not engaged in investment activities.
Every contractor on a public project will be expected to sign a certification regarding its investment activities in Iran. The impact of this law would preclude, absent an applicable exception, companies that are investing in Iran’s energy sector from contracting with the State of Indiana or a political subdivision. Particularly in large organizations, it is important to be proactive with your due diligence to determine whether this law will prohibit you from accepting public contracts in Indiana.